Russia’s Novatek Said to Seek Proposals for $1 Billion of Loans

OAO Novatek (NVTK), Russia’s second-
biggest natural-gas producer, is seeking a syndicated loan of as
much as $1 billion, according to three people with knowledge of
the matter.

Novatek has asked lenders to propose the structure and
pricing for three- and five-year term loans, said the people,
who asked not to be identified because the deal isn’t public.
The Tarko-Sale, Siberia-based company is self-arranging the
deal, and lenders must reply to the so-called request for
proposals by March 22, the people said.

The company has two dollar-denominated loans totaling $500
million maturing this year, according to data compiled by
Bloomberg.

Novatek, run by billionaire Chief Executive Officer Leonid Mikhelson, is planning to build a $20 billion liquefied natural
gas plant on the Yamal Peninsula in Russia’s arctic region with
French company Total SA.

Officials at Novatek didn’t immediately return a telephone
call and e-mail seeking comment on the financing.